Toshiba files unaudited financial results, says future is at stake

Toshiba has filed its delayed financial results, warning that its survival is at stake, the media have reported this Tuesday. 

The tech and construction company has reported a loss of $4.8bn (£3.84bn) for the period between April and December. However, these results have not been confirmed by the company’s auditors.

The company’s latest financial results have been delayed twice already, meaning Toshiba could be removed from the Tokyo Stock Exchange. PriceWaterhouseCooper Aarata, the company’s auditors, have twice refused to sign off Toshiba’s accounts, forcing the company to publish the results without approval. 

The BBC has called this move ‘unprecedented’.  

"There are material events and conditions that raise substantial doubt about the company's ability to continue as a going concern," the company said in a statement.

Toshiba president apologised for the problems, expressing hope that the company would not be delisted. He described the PriceWaterhouseCooper Aarata decision as “truly regrettable”.  

Following the news that Toshiba was struggling, reports started popping up that Foxconn was interested in buying the company’s chip business for $27bn (£21.6bn). It wouldn’t plug the hole completely, but it would give some breathing space to Toshiba. Considering that Japan sees the company as a key national asset, I wouldn’t be too surprised if the deal went through. 

"At the present time, substantial doubt about the company's ability to continue as a going concern exists as of the filing date of the quarterly report,” the report added. 

Image Credit: Toshiba